Mark, from what you’ve described here, it unfortunately sounds like your friend may need different help with his problem. Truly, no tracking or other system can help him if he doesn’t follow it and hold himself accountable. He is lucky to have a friend like you that is trying his best to help him “get it” and change his spending habits, even if it means a size 10 and a half (UK: 45?) in the backside now and then. I wish him success in turning things around soon for a better future.
In some respects, while taxes are the fuel for keeping things running (generally), I tend to believe there is far more angst over the way the money is purportedly used. Can’t say the volumous tax code thrills many taxpayers either. But like others, I have yet to submit my proposed tax code for consideration. To many, this is what taxes feel like: Line 1: How much did you make last year? ___________ Line 2: Tax due - copy the amount from Line 1 here. ____________ Submit the amount from Line 2 to the address provided below.
Thank you for your thoughtful reply. Indeed, an inheritance (bad news, good news) resets the basis to the new owner as of the date inherited. Gifting (still here) merely transfers the original basis to the new owner. Good news - I can still sell any or all of the items when I want. The current 28% tax on collectible items (includes PM’s) gain is hefty but it is what it is. I really enjoy your articles. Please keep em’ coming.
Hypothetically:
A couple of years ago, I purchased several new gold coins and bullion, tubes of silver dollars and platinum bullion - all through Costco at the mighty “discount” price of 4%. Plan was to eventually give the grandkids an equal share at a time when each metal was at what appeared to be at or near a peak, preferably while our clocks are still running. The thinking was to gift it at an appreciated value (documented) then let each decide what they want to do with it during their life, regardless of the value at that chosen time. Could be a loss, on paper. Once gifted, the base value is reestablished as of that date for each new owner(my understanding, not a fact). The money paid for the purchase of these precious metals (PM’s) was ‘written off” and not included in our asset base moving forward. Purely speculative move. And they sure are beautiful. Sadly, newer US currency is often quoted as melt value (lower price) if looking to sell these days, minus commission as well, of course. Beware. Even through this weeks drop, the total PM package value has more than doubled. WARNING: Pick the right baseline and timeline, and you can likely show just about any investment appear the way you want it to look - terrible or great. For the PM’s, over two years - good fortune (for now). Over the last two days, not so good (for now). Total asset portfolio - 256% gain over three years. Yay. YTD 2026 - wrong way! Such are the ways of the markets. Hang on tight. I have full faith in our leadership that their ongoing rhetoric and actions will help drive PM prices back up. Sorry. My bad. So, in this “hypothetical” situation, I sincerely would appreciate input on the “appreciated value gift/ new basis” plan. I have more homework to do, but even if not true, it’s still a gift. Best to all.
Honestly can’t say I know of anyone that gets excited about forking over more money for what seems like an uncontrolled yearly increase in healthcare premiums. On the flip side, if I never hit the deductible, I’d call it a damn fine year.
Perhaps this makes no sense to most Humblers, but for some it’s a big deal. Your money, spend it how you want. Fantastic if you can impart a positive, possibly once-in-a -lifetime experience to your loved ones or others, in whatever form it may be.
Once we had, “our great awakening and correction”, regarding debt in our early married days, we’ve had 30+ years of exceptional to truly perfect monthly credit scores (depending on the agency and how they apply their own scoring rules). Indeed, once we paid off the mortgage, we took a major hit on all the scores and it’s slowly recovering. Not sure we’ll ever see “perfect” again. Such a silly game. I find it laughable when one agency tells you that you don’t have enough activity on your cards (we typically use 3-4 of about 10 available within a month, depending on any special offers) while in the same month, another states you have too many cards with a balance. Note that we have never carried a balance forward on any card for those three-plus decades. We did WAY more than our fair share of supporting the economy this year but apparently, the agencies don’t like it when balances are paid off once any of them exceeds a certain threshold we set, even if not due yet. Anyone else find it interesting that an online purchase (and some retail charges) show up almost immediately on your account (pending) but a refund may take one to two weeks to be applied to your card balance? Best to all.
Whatever decision you make, it is not cast in stone. I seem to be picking up on two limits here - 4% and something closer to 5%. Would you be comfortable trying 4.5% for a year or so (and use the “extra” money as you see fit)? There is no way to know what is or isn’t going to happen to influence your net worth in the future so this experiment, if you will, isn’t really a controlled one in the bigger scheme of things. But it never is. You seem like such a practical person and it appears to have served you well over many decades. Start small. You are planing an adventure to England. What is one thing you’ve fancied over the years but held yourself back from trying or buying or donating to that you could still do that might make your journey a bit more enjoyable? Perhaps even stay longer than your current plan? Only you can answer this one but whatever you decide, I have to imagine you’ll find a way to make it meaningful to you. Cheers!
Geez! You had a TI-84?!? Man, you were living large! If I remember correctly, the TI-55 was the first programmable calculator they offered. I thought I hit the lottery when I got that one.
Comments
Mark, from what you’ve described here, it unfortunately sounds like your friend may need different help with his problem. Truly, no tracking or other system can help him if he doesn’t follow it and hold himself accountable. He is lucky to have a friend like you that is trying his best to help him “get it” and change his spending habits, even if it means a size 10 and a half (UK: 45?) in the backside now and then. I wish him success in turning things around soon for a better future.
Post: The Monthly Mystery of the Vanishing Paycheck
Link to comment from February 11, 2026
In some respects, while taxes are the fuel for keeping things running (generally), I tend to believe there is far more angst over the way the money is purportedly used. Can’t say the volumous tax code thrills many taxpayers either. But like others, I have yet to submit my proposed tax code for consideration. To many, this is what taxes feel like: Line 1: How much did you make last year? ___________ Line 2: Tax due - copy the amount from Line 1 here. ____________ Submit the amount from Line 2 to the address provided below.
Post: Your effective tax rate
Link to comment from January 31, 2026
Thank you for your thoughtful reply. Indeed, an inheritance (bad news, good news) resets the basis to the new owner as of the date inherited. Gifting (still here) merely transfers the original basis to the new owner. Good news - I can still sell any or all of the items when I want. The current 28% tax on collectible items (includes PM’s) gain is hefty but it is what it is. I really enjoy your articles. Please keep em’ coming.
Post: The Playground Indicator
Link to comment from January 31, 2026
Hypothetically: A couple of years ago, I purchased several new gold coins and bullion, tubes of silver dollars and platinum bullion - all through Costco at the mighty “discount” price of 4%. Plan was to eventually give the grandkids an equal share at a time when each metal was at what appeared to be at or near a peak, preferably while our clocks are still running. The thinking was to gift it at an appreciated value (documented) then let each decide what they want to do with it during their life, regardless of the value at that chosen time. Could be a loss, on paper. Once gifted, the base value is reestablished as of that date for each new owner(my understanding, not a fact). The money paid for the purchase of these precious metals (PM’s) was ‘written off” and not included in our asset base moving forward. Purely speculative move. And they sure are beautiful. Sadly, newer US currency is often quoted as melt value (lower price) if looking to sell these days, minus commission as well, of course. Beware. Even through this weeks drop, the total PM package value has more than doubled. WARNING: Pick the right baseline and timeline, and you can likely show just about any investment appear the way you want it to look - terrible or great. For the PM’s, over two years - good fortune (for now). Over the last two days, not so good (for now). Total asset portfolio - 256% gain over three years. Yay. YTD 2026 - wrong way! Such are the ways of the markets. Hang on tight. I have full faith in our leadership that their ongoing rhetoric and actions will help drive PM prices back up. Sorry. My bad. So, in this “hypothetical” situation, I sincerely would appreciate input on the “appreciated value gift/ new basis” plan. I have more homework to do, but even if not true, it’s still a gift. Best to all.
Post: The Playground Indicator
Link to comment from January 31, 2026
Honestly can’t say I know of anyone that gets excited about forking over more money for what seems like an uncontrolled yearly increase in healthcare premiums. On the flip side, if I never hit the deductible, I’d call it a damn fine year.
Post: Money to burn?
Link to comment from January 27, 2026
Spot on. Unless you’re in the, “I have to be seen”, lifestyles, perhaps.
Post: Money to burn?
Link to comment from January 25, 2026
Perhaps this makes no sense to most Humblers, but for some it’s a big deal. Your money, spend it how you want. Fantastic if you can impart a positive, possibly once-in-a -lifetime experience to your loved ones or others, in whatever form it may be.
Post: Money to burn?
Link to comment from January 25, 2026
Once we had, “our great awakening and correction”, regarding debt in our early married days, we’ve had 30+ years of exceptional to truly perfect monthly credit scores (depending on the agency and how they apply their own scoring rules). Indeed, once we paid off the mortgage, we took a major hit on all the scores and it’s slowly recovering. Not sure we’ll ever see “perfect” again. Such a silly game. I find it laughable when one agency tells you that you don’t have enough activity on your cards (we typically use 3-4 of about 10 available within a month, depending on any special offers) while in the same month, another states you have too many cards with a balance. Note that we have never carried a balance forward on any card for those three-plus decades. We did WAY more than our fair share of supporting the economy this year but apparently, the agencies don’t like it when balances are paid off once any of them exceeds a certain threshold we set, even if not due yet. Anyone else find it interesting that an online purchase (and some retail charges) show up almost immediately on your account (pending) but a refund may take one to two weeks to be applied to your card balance? Best to all.
Post: The Debt Free Penalty.
Link to comment from January 25, 2026
Whatever decision you make, it is not cast in stone. I seem to be picking up on two limits here - 4% and something closer to 5%. Would you be comfortable trying 4.5% for a year or so (and use the “extra” money as you see fit)? There is no way to know what is or isn’t going to happen to influence your net worth in the future so this experiment, if you will, isn’t really a controlled one in the bigger scheme of things. But it never is. You seem like such a practical person and it appears to have served you well over many decades. Start small. You are planing an adventure to England. What is one thing you’ve fancied over the years but held yourself back from trying or buying or donating to that you could still do that might make your journey a bit more enjoyable? Perhaps even stay longer than your current plan? Only you can answer this one but whatever you decide, I have to imagine you’ll find a way to make it meaningful to you. Cheers!
Post: Customizing the Safe Withdrawal Rate
Link to comment from January 9, 2026
Geez! You had a TI-84?!? Man, you were living large! If I remember correctly, the TI-55 was the first programmable calculator they offered. I thought I hit the lottery when I got that one.
Post: All you need to know about health insurance, social security and utility bills – sort of
Link to comment from January 8, 2026